Refer to the information provided in Figure 18.5 below to answer the questions that follow. Figure 18.5
-Refer to Figure 18.5. The domestic price of oil is $130 per barrel. If the world price of oil is $135 per barrel, this country will

Question

Refer to the information provided in Figure 18.5 below to answer the questions that follow.  Figure 18.5
-Refer to Figure 18.5. The domestic price of oil is $130 per barrel. If the world price of oil is $135 per barrel, this country will

Quizplus · Accepted Answer

At a domestic price of $130 per barrel, if the world price is higher at $135 per barrel, the country will export oil. The difference between the domestic quantity demanded (20 million barrels) and the domestic quantity supplied (25 million barrels) at this price is 5 million barrels, indicating the country will export 5 million barrels.

Refer to the Information Provided in Figure 18